The Ministry of Finance has issued a fresh notification permitting five reporting entities to perform Aadhaar authentication under the Prevention of Money-laundering Act, 2002 (PMLA). The notification was released by the Department of Revenue on May 27, 2026.
As per the notification, the Central Government has authorised the entities after being satisfied that they comply with the privacy and security standards prescribed under the Aadhaar Act, 2016. The approval has also been granted following consultation with the Unique Identification Authority of India (UIDAI) and the Securities and Exchange Board of India (SEBI).
The move enables these financial entities to carry out Aadhaar-based authentication for customer verification and compliance purposes under Section 11A of the Prevention of Money-laundering Act.
The five authorised reporting entities are:
- Groww Mutual Fund
- ICICI Securities Limited
- Upstox Securities Private Limited
- Cybrilla Technologies Private Limited
- Aaritya Broking Private Limited
The notification has been issued under Section 11A of the PMLA, which empowers the Central Government to allow reporting entities to undertake Aadhaar authentication after ensuring adequate safeguards related to user privacy and data security.
This development is expected to streamline digital KYC processes and strengthen compliance mechanisms in the financial services sector. Aadhaar-based authentication helps financial institutions improve customer onboarding efficiency while maintaining regulatory standards for anti-money laundering compliance.
The notification was published in the Official Gazette vide S.O. 2669(E) dated May 27, 2026.
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